Series 7 practice questioneasyProspecting and Cold Calling 1
Retail correspondence prepared by a representative generally requires prior approval by:
- Aa registered principal, if firm procedures require it for the communication type✓ Correct answer
- Bthe SEC before first use
- Cthe transfer agent on the issue
- Dthe SIPC trustee
Explanation
Why A — a registered principal, if firm procedures require it for the communication type
Retail communications often require principal approval before use, while correspondence may be supervised under the firm’s written procedures. The key test is the category of communication and the firm’s supervisory system.
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